Between 2022 and 2031, the global signage industry is expected to grow at a CAGR of 6.3 percent, reaching US$ 63.3 billion.
The retail industry is undergoing structural changes, as well as the implementation of enhanced tactics, which will have a direct impact on signage demand. Changes in traditional retail have occurred from a highly fragmented industry and increased competition for offline establishments from e-commerce enterprises. According to a report by Future Market Insights (FMI), this would provide significant opportunities for the signage market to grow between 2021 and 2031.
The Signage Market Study’s Key Takeaways
- The signage industry will rise at a CAGR of 6.4 percent between 2021 and 2031 as the retail sector expands.
- The United States is dominant due to its large number of supermarkets and hypermarkets. It is estimated to account for more than 85% of North American sales.
- In 2021, the UK market will expand by 2% y-o-y due to a focus on outdoor digital advertising.
- India will become an important market for signage sales in South Asia as the retail sector expands.
- China’s booming retail sector will propel it to the forefront of East Asia’s signage market.
Signage’s Cost-Effectiveness Creating Profitable Opportunities
Companies must ensure that their marketing dollars are well spent, and no company wants to waste money on signage that does not increase foot traffic. Businesses must have a clear understanding of what they aim to achieve with signage advertising.
When compared to other marketing initiatives, such as a newspaper advertisement, signage helps firms develop in the long run. This serves or caters to the company’s short-term marketing objectives. Signage, on the other hand, can aid in the development of a company’s brand.
Even though the initial cost may be considerable, it is worthwhile to invest in a high-quality product that will reap benefits for a longer period while minimizing maintenance expenditures. Furthermore, signage marketing does not work at a set time because it reaches out to everybody who passes by the advertising at any time of day or night.
COVID-19’s Impact on the Signage Market
Due to digital breakthroughs in outdoor advertising, growth was accelerated before COVID-19. Companies have taken a step back and scaled back their advertising efforts since the pandemic. Companies were wary of purchasing outside spaces because the world was engulfed in lockdowns, resulting in few individuals leaving their houses.